Operations Management and TQM: (CBME 1)

OPERATIONS MANAGEMENT and TQM
(CBME 1)
HISTORICAL DEVELOPMENT OF QUANTITATIVE TECHNIQUES
Frederick Winslow Taylor is credited with the initial development of scientific
management techniques. The scientific management principle developed by him during the
early 1900, laid the basis to the study of managerial problems. He developed his theory
emphasizing new philosophy management responsibility for planning and supervision and
formulating rules, formulate, etc., in connection with labor and machines techniques, which
would result in lower cost to the employer and a higher return to labor.
Taylor’s chief contribution to the development of management theory was an application
of scientific method to problems of management. His emphasis on the study of management
from the point of view of shop management led to the overlooking of “the more general aspect
of management, particularly in the United States and Great Britain”
In addition, several quantitative techniques were further developed during World War II.
World War II posed many military, strategic, logistics, and tactical problems. Operations
research teams engineers, mathematicians, and statisticians were developed to use scientific
method to find solutions for many of these problems. The usefulness of quantitative techniques
was evidenced by a steep growth in the application of scientific management in decision-making
in various fields of engineering and management. At present, in any organization, whether a
manufacturing concern or service industry, quantitative techniques and analysis are used by
managers in making decision scientifically.
QUANTITATIVE TECHNIQUES
-It is scientific method or technique used by the business world for problem solving and
decision making.
-It also includes methods or tools which focus on objective measurement and analyzing
numbers in order to draw conclusion about given problems.
-Quantitative techniques are those provide the decision makers with systematic and
powerful means of analysis, based on quantitative data.
-Quantitative techniques evaluate planning factors and when these arise then provide
meaningful solution to particular business problems.
-Quantitative techniques can be define as collection mathematical and statistical tools that
are used to provide powerful means of analysis using quantitative data for effective decision
making in business.
-Quantitative techniques involve the use of numbers, symbol, mathematical expression and
other elements of quantities and serve as supplement to the judgments of the decision makers.
SCOPE OF QUANTITATIVE TECHNIQUES
 Finance and Accounting- Cash flow analysis, Capital budgeting, Dividends and Portfolio
Management, Financial planning.
 Marketing Management- Selection of product mix, Sale resources allocation and
assignments.
 Production Management- Facilities planning, Manufacturing, Aggregate planning,
Inventory control, Quality control, Work scheduling, Job sequencing, Maintenance and
Project planning scheduling.
 Personal Management- Man power planning, Resource allocation, staffing, scheduling of
training programs.
 General Management- Decision support system and management information system,
MIS, Organizational design and control, Software process management and knowledge
management
ROLE OF QUANTITATIVE TECHNIQUES IN BUSINESS
1. Solution for various business problem
With increasing competition and scare resources, how manager can increase the
profits of the organization are some examples of problems faced in today’s business.
Quantitative Techniques help in the field of production, marketing, finance and other
activities of business
2. Selection of an appropriate strategy
Every business is having a motive to increase its market share from its
competitors by observing the strategies of the others. So game theory comes handy in
this situation where businessman can minimize cost or maximize profit.
3. Base for scientific analysis
Quantitative techniques enforce disciplined thinking about organizational
problems. They provide precise description of the cause and effect relationship and risk
elimination.
4. Reduction in cost and minimizing waiting time
Time is essence in service industry. It is rightly said that a good decision if taken
at right time then outcome of that decision will automatically good. There is gap between
service time and capacity so serve. So queuing theory helps in minimizing waiting time
and wastage of resources. It provides a base for businessman to take a correct and
profitable decision.
5. Proper allocation of resources

It helps in the proper allocation of resources which save time and cost of the
businessman. These techniques ensure completion of task with in time and with limited
resources.
6. Helpful in inventory management
The inventory management is deal with planning and control of inventory in the
organization. If inventory holds for large time and in large quantity, then this idle resource
and create losses for the organization. On the other hand, if there is shortage of
inventory then it also negative impacts on profitability of the organization. So quantitative
techniques maintain balance between holding the inventory or not. These enables
management to decide when to buy and how much to buy.
7. Facilities in decision making
Decision making is an essential part of management process. Thus, the decision
maker in the present business must understand the scientific methodology of making
decisions. In real life, some decision making situations are simple while other are not.
8. Useful in production management
It is helpful in planning scheduling and controlling of plant layout and designing of
production process.
9. Helpful in human resource
Human Resource is main asset of the business. Today, it becomes a challenge
for business to find out best talent and how to retain this. Quantitative techniques helpful
in studying personal recruitment process, selection criteria, accident rates and labor
turnover etc.
References:
www.wisdomjobs.com
http://www.youtube.com/watch?v=d_8FiEd-4Ak&feature=share
http://www.0.freebasics.com/http/quantitativetechniquesformanagement.blogspot.com/
2017/11/quatitative-techniques-historical-development.html?m=1

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OPERATIONS MANAGEMENT and TQM

HISTORICAL DEVELOPMENT OF QUANTITATIVE TECHNIQUES

Frederick Winslow Taylor is credited with the initial development of scientific

Taylor’s chief contribution to the development of management theory was an application

of scientific method to problems of management. His emphasis on the study of management

of management, particularly in the United States and Great Britain”

was evidenced by a steep growth in the application of scientific management in decision-making

in various fields of engineering and management. At present, in any organization, whether a

managers in making decision scientifically.

numbers in order to draw conclusion about given problems.

powerful means of analysis, based on quantitative data.

meaningful solution to particular business problems.

SCOPE OF QUANTITATIVE TECHNIQUES

Management, Financial planning.

 Marketing Management- Selection of product mix, Sale resources allocation and

 Production Management- Facilities planning, Manufacturing, Aggregate planning,

Project planning scheduling.

 Personal Management- Man power planning, Resource allocation, staffing, scheduling of

ROLE OF QUANTITATIVE TECHNIQUES IN BUSINESS

1. Solution for various business problem

2. Selection of an appropriate strategy

this situation where businessman can minimize cost or maximize profit.

3. Base for scientific analysis

Quantitative techniques enforce disciplined thinking about organizational

4. Reduction in cost and minimizing waiting time

5. Proper allocation of resources

6. Helpful in inventory management

inventory then it also negative impacts on profitability of the organization. So quantitative

management to decide when to buy and how much to buy.

7. Facilities in decision making

Decision making is an essential part of management process. Thus, the decision

8. Useful in production management

It is helpful in planning scheduling and controlling of plant layout and designing of

9. Helpful in human resource

Human Resource is main asset of the business. Today, it becomes a challenge

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